– Large deal momentum strong with $2.6 bn TCV.
– Revenue guidance for FY22 revised to 14%-16%.
– Margin guidance retained at 22%-24%
BENGALURU , India, July 14, 2021 /PRNewswire/ — Infosys (NSE: INFY) (BSE: 500209) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered a strong Q1 performance with year on year growth accelerating to 16.9% and sequential growth increasing to 4.8% in constant currency. Large deal flows remained strong with TCV of $2.6 billion in Q1. Operating margin for the quarter was robust at 23.7%, with Free Cash Flows growing by 18.5% year on year.
42.1% YoY CC Digital growth
16.9% YoY 4.8% QoQ CC Revenue growth
23.7% Operating margin
22.6% YoY Increase in EPS (INR terms)
$2.6 bnLarge deal signings
“Driven by the dedication of our employees and the trust of our clients, we grew at the fastest pace in Q1 in a decade, at 16.9% year-on-year and 4.8% quarter-on-quarter in constant currency. I am proud of our employees, who as ‘One Infosys’ demonstrate resilience and commitment in delivering for our clients. This gives us confidence to increase our revenue growth guidance to 14%-16%”, said Salil Parekh, CEO and MD. “As Infosys completes forty remarkable years, its continuing success and global impact are a testament to the vision of the founders and all the leaders who have shaped the company,” he added.
1. Key highlights for the quarter ended June 30, 2021
“Employee wellbeing is of paramount importance to us and we have had multiple interventions in this regard including facilitating vaccination for them and their dependents. We rolled out several intense employee engagement initiatives including career acceleration opportunities, compensation reviews and learning & development interventions. Our clients continue to be supportive of the multiple initiatives we have undertaken; they value the delivery commitments we have met even during these extraordinary times”, said Pravin Rao, Chief Operating Officer, Infosys. “As the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. We plan to meet this demand by expanding our hiring program of college graduates for FY 22 to ~35,000 globally”, he added.
“We remain confident of delivering on the margin guidance, underpinned by our comprehensive cost optimization program, despite increasing cost headwinds arising largely from compensation review, talent acquisition and retention”, said Nilanjan Roy, Chief Financial Officer. “Our free cash conversion was strong at 122.3% of net profit and ROE improved to 29.3%”, he added.
2. Capital Allocation
Pursuant to the Board recommendation and subsequent to shareholders’ approval in the AGM, the company has started share buyback program through open market route from June 25, 2021 and till date, has bought back 9.8 million shares worth ₹1,542 crore (app. $0.2 billion) or 16.8% of total authorization of ₹9,200 crore at an average price of approx. ₹1,569 per share (compared to maximum Buyback Price of ₹1,750 per share).
*USD-INR rate of 75.00
3. Client Wins & Testimonials
The trust clients’ repose in Infosys drives us to invest further in building stronger digital capabilities and to raise the bar in delivery excellence.
Infosys is a global leader in next-generation digital services and consulting. We enable clients in more than 50 countries to navigate their digital transformation. With four decades of experience in managing the systems and workings of global enterprises, we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from our innovation ecosystem.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
“Certain statements in this release concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the ‘safe harbor’ under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding COVID-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downturn or recession in India, the United States and other countries around the world, changes in political, business, and economic conditions, fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry and the outcome of pending litigation and government investigation. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2021. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.”
Infosys Limited and subsidiaries Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:
(Dollars in millions)
Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:
(Dollars in millions except per equity share data)
1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2021 which have been taken on record at the Board meeting held on July 14, 2021.
2. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.
3. Other Income includes Finance Cost.
IFRS-INR Press Release:https://www.infosys.com/investors/reports-filings/quarterly-results/2021-2022/q1/documents/ifrs-inr-press-release.pdf